FBR rules out reversal of faceless customs assessment

The Federal Board of Revenue has said it will not roll back its Faceless Customs Assessment system, describing the relocation of the Central Appraising Unit to Islamabad as the next phase of customs modernisation rather than a step open to reversal.

In a statement reported by the Associated Press of Pakistan, the board said only the assessment function is being moved to the capital. Physical examination and port operations will continue at Karachi, and traders will still be able to take their problems to the collectorates of jurisdiction in the city. The stated aim is to cut discretionary powers, reduce direct contact between taxpayers and officials, and make assessment decisions system-driven.

The clarification follows a representation from the All Pakistan Textile Mills Association raising concerns about clearance delays, disputes over valuation and referrals to laboratories. According to the fuller statement carried by TechJuice, the FBR said the performance figures in APTMA's representation largely relate to the first months of implementation and do not reflect later improvements. It said average customs clearance time has come down from 40.2 hours to 20.57 hours, and that 83 percent of consignments are now cleared within 48 hours.

On valuation, the board said declared values continue to be governed by Section 25 of the Customs Act, 1969, and that digital assessment does not permit officers to enhance values arbitrarily. Officers are required to follow the prescribed valuation methods and to record reasons where the law requires them.

The FBR placed the change within a wider digital programme that includes a Digital Invoicing System and AI-based monitoring of industrial production, which it says will improve the visibility of output and tax records and curb evasion. It cited India's faceless assessment model, Singapore's TradeNet and Dubai Smart Customs as examples of technology-driven customs administration.

To speed up clearances, the board said it will arrange dedicated backlog clearance for Export Facilitation Scheme and export-oriented consignments, and green-channel facilitation for Authorised Economic Operators and compliant importers. It proposed service timelines of 24 hours for assessment and first review, 48 hours for a second review, 24 hours for examination once a consignment is grounded and 72 hours for laboratory results, backed by automatic escalation. Provisional release under Section 81 of the Customs Act, 1969 will be facilitated where the law allows it.

The board asked trade bodies to brief their members on filing Goods Declarations before a vessel arrives so that eligible consignments can be processed earlier and port dwell time reduced. It invited APTMA and other bodies to submit specific, verifiable cases with Goods Declaration numbers so that reported delays, valuation disputes and classification errors can be examined.